China may likely increase its dominance over the Panama Canal after a port deal worth the value of $23 billion between U.S.-based BlackRock and Hong Kong’s CK Hutchison.
In an attempt to reduce the control of Chinese influence over the Panama Canal, the United States president, Donald Trump, entered into a deal that would have given the country control of 43 ports in 23 countries, with the inclusion of two key Panamanian ports. Trump also went as far as suggesting that his country reclaim the canal.
Strong pressure from China and the country’s threats of an anti-monopoly probe are the reason why CK Hutchison let its sole discussion window with BlackRock expire.
The firm now has a window for restructuring the contract, which may likely have a major Chinese state-owned investor like Cosco in its negotiation.
China has been calculating for a long time on how to expand its presence in Latin American infrastructure, something that the United States officials are doing everything to counter. Part of the locations where CK Hutchison operates include the Balboa and Cristobal ports since 1997.
Analysts and opinion chiefs have stated that despite the failed deal with the United States, China could still not have influence over the Panama assets, but may earn dominance in other popular ports across the globe in the revised deal.
“China will insist this be the quid pro quo: that the other global ports have Cosco participation. And obviously, Cosco is already a major global port holder,” said Dane Chamorro, head of Global Risk Analysis at consulting firm Control Risks, in an interview with Fox News Digital.
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